The week ahead: An 8% yielder, Royal Mail, Next, Ferguson, Carillion

The pace of corporate reporting is beginning to slow, but there is still plenty to interest investors and some big dividends to be had.

Monday 4 December

Trading Statements

RhythmOne, Character Group, MXC Capital

AGM/EGM

Mysale Group, Taptica International, UK Mortgages, Ig Seismic Services

Tuesday 5 December

Ferguson (FERG), the old Wolseley, has been a star performer for years, and recent form has been no different, but is all the good news priced in?

Maybe not. Margins are improving in the US where the plumbing supplies giant’s makes a big slug of money, it’s winning market share and the outlook for construction is positive.

Admittedly, the valuation at 18 times forward earnings, looks stretched now. However, broker Liberum believes there is “the potential for surplus capital returns of around 9% this year, after the Nordics sale”. That implies 15% total shareholder return upside from here.

Trading Statements

WYG, Collagen Solutions, Vianet, Tatton Asset Management Iomart Consort Medical, Victrex, Ferguson, Allied Irish Banks, IG Group

AGM/EGM

London Finance & Investment Group

Wednesday 6 December

Carillion (CLLN) is pencilled in to issue its usual full-year trading update, but the company and its representatives have so far failed to confirm this to interactive investor.

There has been a slew of trading updates and profit warnings recently, and the company is in a very fragile state. It may be that management decides it’s said enough for now, preferring instead to break cover when there’s more news on a rumoured debt-for-equity swap.

Trading Statements

Sysgroup, Plastics Capital, Mercia Technologies, Tricorn Group, Stagecoach, RWS Holdings, Schroder European Real Estate Investment Trust, Redhall, Numis, Oxford Metrics, Easyhotel, Carillion

AGM/EGM

Orchard Funding Group, Ceres Power, YouGov, Billing Services Group, Gattaca

Thursday 7 December

Thursday is dividend day, and this week is one for seekers of hefty payouts.

Following last month’s well-received half-year results, Royal Mail (RMG) goes ex its interim dividend of 7.7p. Shareholders get the cash on 10 January. Add in the final payout and the shares yield around 5.5%.

There has been little to celebrate at Debenhams (DEB) for years as it tries to make a turnaround plans stick. However, a generous dividend should ease the pain.

“Continued cash generation and confidence in Debenhams Redesigned strategy supports maintained final dividend of 2.4p per share, making a total dividend of 3.425p per share,” said the firm at October’s final results.

Despite annual results meeting expectations, broker Cantor Fitzgerald argues that while the new strategy is delivering results, market conditions remain challenging.

“On just 8.0x calendar 2018 the shares are lowly rated but with near term market conditions likely to remain challenging we retain a ‘hold’ rating, albeit with a reduced target price of 43.5p reflecting the downgrade,” writes analyst Mark Photiades.

High street bellwether Next (NXT) will start trading without the right to its interim dividend of 53p before paying out early January.

Trading statements

Clipper Logistics, Mulberry Group, Smith (DS), CareTech

AGM/EGM

Sanditon Investment Trust, Henderson International Income Trust, The Brighton Pier Group, Hemogenyx Pharmaceuticals, Gleeson (M J), Aeorema Communications, Abcam, Fidelity Asian Values, Foresight Solar VCT, Frontier IP Group

Friday 8 December

Trading statements

AGM/EGM

Axa Property, Datang Intl Power Generation, Quadrise Fuels International, DX Group, River And Mercantile Group, Softcat

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. 

Source.